Coach Global Performance Declines, Chinese Market Showing Good Momentum

The latest report released by Coach, New York's "light luxury" brand, last night showed that sales in the first quarter of fiscal year 2014 as of September 28, 2013 were $1 billion 150 million, down 1% compared with the same period last year. Net profit fell 2% to 827 million US dollars from 845 million US dollars in the same period last year, and business income also decreased by 3% compared to the same period last year. It is worth noting that in the fall of the market, the performance of the company in the Chinese market continued its strong performance in the last quarter, a year-on-year growth of up to 35%, and its direct sales in the same store also increased to two digit growth.

In the global market, its performance in North America and Japan is particularly bad. Because of the strong enemy. Michael Kors In recent years, the world's largest North American market has been slowing down. In the quarter, sales in North America decreased by 1% to $778 million from $784 million in the same period last year, while same store sales also dropped 6.8% compared with the same period last year. Shipments to department stores also declined slightly. Japan's market plus exchange rate dropped by 22%.

stay Luxury industry Lu Xiaoming, who has rich experience and now is the founder and President of organic home, said in an interview: "the products of the entry-level market positioning of luxury products will continue to grow in the future, and the products that are suitable for the middle class will continue to develop, and the growth rate may be like the growth of extravagant products in the previous two years, because these products are the real needs of Chinese consumers."

In the last financial year, Cox Chi The total sales in the Chinese market increased by 40% over the same period last year, while other light luxury brands such as Italy leather Furla and American leather and clothing brand Kate Spade also performed well, and are actively expanding their business in China.

UBS Securities analysis reported that mass consumption of luxury goods is a long-term trend in the Chinese market.

In order to further tap the emerging market space and cope with the weakness of the North American market, the company has been actively promoting brand transformation since last year. Not long ago, the brand officially launched the shoe line, and its brand transformation plan was to transform the brand from the original leather products to the fashion lifestyle brand, including shoes, clothing and other product lines.

Lew Frankfort, chairman and chief executive of the company, said that the company has achieved a good growth in the emerging market, men's business and the development of fashion lifestyle. This is also a brand transformation measure aimed at the competitive environment of handbags and accessories business in North America.

In the last fiscal year, the growth of the new business was nearly 50%, while the sales of footwear products amounted to $250 million, while the sales of other categories such as scarves, sunglasses and jewellery accounted for 7%.